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Retail income July 2020:

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Retail sales July 2020:

Consumers invested considerably less than predicted in July as a pullback in auto income helped interesting an financial system battling to shake off the outcomes of the coronavirus pandemic.

Retail product sales rose 1.2% for the thirty day period, towards the anticipated maximize of 2.3% from economists surveyed by Dow Jones.

The news wasn’t all a letdown, even so: Excluding autos, the obtain was 1.9%, ahead of the 1.2% estimate. A separate report also confirmed that employee productivity rose at its fastest tempo in 11 decades, up 7.3% annualized for the 2nd quarter and very well forward of the 1.5% Reuters estimate.

“Similar to the work opportunities report, retail income stand in stark distinction to the thought that progress in July ‘stalled’ – when in truth it ongoing at a strong, if considerably slower, tempo,” Citigroup economist Andrew Hollenhorst reported in a be aware.

Considered a bellwether for an economic system that will get two-thirds of its exercise from buyers, retail revenue saw an 8.4% surge in June that integrated large gains in home furnishings and equipment profits. That June amount was presently strong at 7.5% but was revised greater.

However, all those gains cooled as a resurgence in Covid-19 conditions triggered reopening activities to slow.

Electronics and equipment income noticed regular monthly gross sales bounce 22.9% although garments increased 5.7% and bars and dining places, an business particularly battered by the coronavirus, have been up 5%. 

Motor car or truck components and dealers described a 1.2% slide, bringing down the headline amount. Sporting products and guide retailers observed a 5% decrease whilst property and garden suppliers described a 2.9% drop.

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In all, it however marked the third straight every month gain for retail, which plunged 14.7% in April then rebounded to 18.3% in May possibly as the sharp shutdown in March to end the virus thawed.

The earlier 3 months demonstrate that “customer spending has rocketed to record highs,” claimed Chris Rupkey, chie financial economist at MUFG Union Bank. “There can’t nevertheless be a economic downturn in the country if the consumer is paying out their hearts out like this.”

The upcoming of the economy, and specifically the wellbeing of the client, remains a query. Extended unemployment positive aspects whichi had given displaced employees $600 a 7 days on top rated of their ordinary advantages expired July 31, and Congress appears nonetheless sharply divided in excess of what the up coming rescue package deal will glimpse like.

“Offered ongoing higher unemployment, retail product sales in August and in the fall will depend to a large degree on the timing and extent of extra govt help,” mentioned Robert Frick, corporate economist at Navy Federal Credit Union.

Even with GDP down 32.9% in the 2nd quarter as calculated about an annualized basis, customers were being still liable for 67% of investing. Unemployment has been falling but is however at 10.2%, even though Thursday’s jobless promises report also showed a gradually mending photograph but with 28.3 million Americans even now amassing benefits.

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Economy

Pilots offer TAP the same logic of fleet renewal to restore working conditions – Breaking News

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Pilots offer TAP the same logic of fleet renewal to restore working conditions - Breaking News

In a statement sent to members, to which Lusa had access, the Civil Aviation Pilots Union (SPAC) cites the adage “Caesar’s wife is not enough to be serious, she must look serious” to criticize the TAP option.

“Following the justification rationale from those who choose to purchase cars during this very challenging time, which is based on miraculous savings, we offer the same “spend more to save” logic to restore dignity. workers,” the union said in a statement.

This is the news, reported by TVI/CNN Portugal and Away portal, that TAP has ordered a new fleet of BMW cars for administration and managers, replacing Peugeot cars.

In the memo, SPAC emphasizes that “while some are undergoing brutal pay cuts, while layoffs are still ongoing and quality of life depends on others, at the same time, the fleet of leadership positions is being revamped.” arguing that “the existence of social justice is indispensable for the existence of social justice.”

In this context, he believes that the “new attitude” to “expenses” should affect pilots when working conditions are restored.

“If this does not happen, we will be very surprised and will be forced to believe in the hypothesis that the TAP administration either does not want to use financial surpluses to fairly replace the working conditions of workers, or there is no financial surplus and this renewal of the fleet was paid for by reducing the wages of workers,” the statement says.

TAP claims that the renewal of the fleet for the administration and managers saves 630 thousand euros annually, justifying that the decision was based on this consideration while respecting the contracts.

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“The Board wishes to clarify that TAP has a corporate fleet for administration and directors, which is in an operational ‘lease’ mode. With the option we have made, we are saving up to 630,000 euros annually if we kept the cars we have today,” TAP said in an internal statement, which Lusa had access to.

TAP justifies this by saying that 50 vehicles were at stake, for which a tender was held for the market, and six organizations were invited to participate in the Portuguese market.

“The offer with the lowest price has been selected, with a monthly income of 500 euros. For reference, other offers submitted by TAP with a more competitive cost included a monthly rent of 750 euros,” the company’s executive committee explained in a statement.

Also today, the National Union of Civil Aviation Flight Personnel (SNPVAC) said in a statement that Lusa had access to that the TAP fleet renewal causes “a lot of shame on the part of others”, given that if it is not a sign of willingness to raise crew salaries, it is “shameful » a management act.

The President of the Republic, Marcelo Rebelo de Sousa, also reacted to the news today, pointing out to the Portuguese airline a “problem of common sense”.

“I have already spoken about several public organizations in the past, about the distribution of dividends and about wages, and I understand that when you are in a difficult period, efforts must be made to set an example of containment,” Marcelo Rebelo de Sousa defended.

According to the President of the Republic, it is understandable that companies bear the costs, but he defended the need to “have common sense” when the country and the world are going through a “difficult period.”

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Economy

From taxes to wages. Six CMVM Proposals to Encourage Savings – Markets

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From taxes to wages.  Six CMVM Proposals to Encourage Savings - Markets

Taxation plays a central role in encouraging long-term savings. This is the conclusion of a study by the Securities Market Commission (CMVM) on the subject, which identifies six main measures highlighting the importance of encouraging the savings of Portuguese families who reduced and mostly stored in warehouses.

“Long-term saving plays a fundamental role in improving the financial security and well-being of individuals and families, as well as in financing companies and the economy as a whole. It is very difficult and often difficult, especially for families,” points out from a document published in World Investor Week.

That is why states encourage and support the formation of these savings, namely through tax incentives. Portugal is already including some of these exemptions in its tax system, but the regulator believes more are needed. Here are six measures:

1. Favorable taxation for the new “European NDP”.

The Pan-European Reform Product (PEPP), which came into force in March 2022 national regulation was promised government by the end of this year – is the goal of the first recommendation. The CMVM calls for the creation of a PEPP tax regime “in line with the government capitalization regime”.

This equalization will mean tax deductions for PEPP subscribers, tax exemption for PEPP investment portfolios, and more tax-friendly treatment of payments made by PEPP to its subscribers when they subsequently gain access to benefits.

2. European investment funds

With regard to European products, the CMVM is also considering European Union long-term investment funds (ELTIF), requiring that the tax treatment for collective investment bodies apply to both this product and credit funds, allowing their holders to benefit. from tax deferral on redemption or reimbursement in case of reinvestment.

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3. PPR style savings accounts

CMVM’s second proposal is to create individual retirement savings plans or accounts that are eligible for the Savings and Retirement Plan (PPR) regime. In other words, these would be accounts in which depositors could place their savings up to a certain amount, as well as buy and transact financial instruments on them.

4. Reformulation of the IRS collection

A reformulation and increase in the IRS collection deduction applied to long-term retirement savings products (depending on the various ways this can be done) is seen as necessary to encourage long-term savings.

5. Reinvestment of capital in deferred tax funds

Postponing the taxation of redemption or reimbursement of investment funds in case of reinvestment is also one of the measures. In the case of transfers between funds, the relevant taxation will only take place when the investor leaves the investment fund circuit and at rates that are all the more favorable the longer the investment in this circuit remains stable.

6. “Pair contributions”

In addition to taxes, CMVM also proposes the creation of programs to encourage long-term savings by establishing upfront commitments between companies and workers to save on future wage increases. According to the watchdog, these “coincident contributions” would allow deferral of repayments or refunds of taxes in the event of a reinvestment.

“Saving to achieve specific long-term goals allows families to increase their own funds to meet these expenses, reduce credit use, monthly efforts of families associated with a reduction in credit and the risk of default for the financial sector. “, he emphasizes.

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CMVM adds that the application of long-term savings in financial instruments tends to be advantageous because the return on savings applied to them tends to be higher than the return on other financial products such as bank deposits.

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Economy

Red tide in Europe. Eurozone interest rates worsen – markets in a minute

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Red tide in Europe.  Eurozone interest rates worsen – markets in a minute

Natural gas extends losses after Gazprom’s supplies to Italy resume. Oil maintains uptrend

Oil has benefited from a price rally as investors anticipated the biggest cut in oil production adopted by OPEC+ since 2020.

The group will cut capacity by two million barrels a day, more than double what was originally envisaged, and the cut will help balance oil prices at a time when the global economy is expected to slow down.

“A cut of two million barrels a day shows how aggressive they want to be on prices,” said Vishnu Varatan, Asia head of economics and strategy at Mizuho Bank.

In response, West Texas Intermediate (WTI), traded in New York, has risen 9% over the past two sessions to break $86 a barrel. By 08:00 Lisbon time, WTI was at the waterline, adding a very small 0.03% to $86.55.

Brent crude, traded in London and a benchmark for the European market, rose 0.17% to $91.96 per barrel.

In turn, natural gas (TTF) prices, which reached July lows yesterday in the Amsterdam market, continued to decline this morning, falling by 1.2% to 160 euros per megawatt-hour.

Raw materials continued to fall after Gazprom announced this Wednesday that it would resume gas supplies to Italy. The Russian company “together with Italian buyers managed to find a solution” after the September regulatory changes in Austria, which made it difficult to supply gas to Italy, Gazprom said in Telegram.

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